The June 2010 United Kingdom Budget, officially also known as Responsibility, freedom, fairness: a five-year plan to re-build the economy, was delivered by George Osborne, Chancellor of the Exchequer, to the House of Commons in his budget speech that commenced at 12.33pm on Tuesday, 22 June 2010 (just 90 days after the previous budget speech). It was the first budget of the Conservative-Liberal Democrat coalition formed after the general election of May 2010. The government dubbed it an "emergency budget", and stated that its purpose was to reduce the national debt accumulated under the Labour government. In his budget speech Osborne quoted data and forecasts made by the independent Office for Budget Responsibility that was formed by the coalition soon after they took up office. The preceding budget of the Labour Party in March was only partly enacted due to the calling of the election. Economy Osborne predicted that the economy would grow by 1.2% in 2010, rising to 2.9% in 2013. He said the country was set to miss the previous government's "golden rule" in the current cycle by £485bn. The Chancellor said he expected consumer price inflation (as measured by the Consumer Price Index) to reach 2.7% in 2010, above the target of 2%. He forecast that unemployment would peak at 8.1% in 2010, falling over each of the next four years. Osborne said the state accounted for "almost half" of all national income, including the escalating cost of debt interest, which was "completely unsustainable". Measures introduced Osborne aimed to balance the structural current account deficit by 2015–16. The balance of tax rises to spending cuts in his budget was 23% to 77%. Taxes Income tax personal allowances for people under 65 years old will be raised by £1000 from April 2011, taking about 880,000 people out of the tax system and reducing income tax on the low-paid by £200 p.a. The main rate of VAT will increase from 17.5% to 20% on 4 January 2011. This had been widely predicted before the Budget. No taxes will be imposed on items that are currently zero-rated (e.g. food, children's clothes). A new bank levy was announced, to raise £2 billion p.a. Corporation Tax will fall progressively in 1% increments for each of the next four years, from 28% to 24%. The small companies' tax rate will be cut from 21% to 20%. Capital gains tax increases from 18% to